Fri, 13 November 2015
57: Qualifying for Multifamily Apartment Building Loans f/ Old Capital Real Estate Investing Podcast with Michael Becker & Paul Peebles
#57: Keith comes to you from Little Rock, Arkansas today.
Our guest is Old Capital Lending’s Michael Becker of Dallas, TX, to tell us about originating Multifamily Apartment Building loans.
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Listen to this week’s show and learn:
01:05 Keith is in Little Rock, Arkansas this week for an investment real estate tour.
04:53 Michael Becker of Old Capital Lending appears.
06:50 Single Family Homes vs. Multifamily Apartment advantages / disadvantages.
08:57 Recent happenings in this lending space.
10:20 Loans for 5+ unit residential property are called commercial loans.
11:55 Multifamily commercial loans are primarily qualified by the asset, not the borrower.
15:48 Residential 1-4 lending is like a formulaic science; multifamily commercial 5+ is closer to an art.
17:48 Debt Service Coverage Ratio (DSC or DCR). 1.25 minimum is typical.
19:00 How much liquidity do you need for a multifamily loan?
21:12 Borrower credit scores.
24:10 Loan duration.
26:08 Balloon payments, Pre-payment Penalties, Assumable Loans.
29:26 Recourse vs. Non-Recourse Loans. “Bad Boy Carve Outs.”
31:26 Can you buddy up with friends to buy a big apartment building together?
34:38 Qualifying for multifamily property loans out-of-state.
35:49 Higher closing costs for apartment building loans
39:32 How many states does Old Capital lend in?
OldCapitalLending.com - Multifamily / commercial lending.
SPIAdvisory.com - Michael Becker’s syndicating company.
MidSouthHomeBuyers.com or call (901) 217-4663 for Top-Notch Turnkey Rental Properties.
NoradaRealEstate.com or call (800) 611-3060. Your Premier Source for Turnkey Cash-Flow Investment Property.
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